Articles Tagged With: FHA 203b Mortgage

November 18, 2020

Getting A Mortgage With A Low Credit Score

Lots of potential home owners want to know if it is possible to get a mortgage with a low credit score. The answer to this kind of question may surprise you, but much depends on both FHA loan rules AND participating lender standards. What do you need to know to get started looking for a home loan with a low credit score? Start Working On Your Credit Today What some borrowers don’t understand is that there are things you can do in the planning stages of your home loan journey to improve credit scores and they are steps you do not have to pay someone else to do for you. One of the first of these is to pull your credit report from the three major credit reporting agencies Equifax, | more...

November 17, 2020

HUD Says November Is Fraud Awareness Month

By Joe Wallace

The Department of Housing and Urban Development is observing the month of November as Fraud Awareness month. The agency’s official site states, “During November Fraud Awareness Month, HUD is highlighting the many resources available to help combat fraud.” What kind of resources are available to borrowers and potential borrowers? One of them is a video titled, “What Does Fraud Mean To You?” The HUD official site also includes links to resources such as a global occupational fraud report. What should consumers beware of and raise the awareness of when it comes to fraud associated with mortgages and refinance loans? There are a variety of critical areas that should be paid attention to–much will depend on what stage of home ownership you are at. Are you a first-time home buyer? A | more...

Rehab Refinance Loans, reverse mortgages

November 16, 2020

Rehab Refinance Loans, Effects Of The Pandemic, And Interest Rates

By Joe Wallace

At the time of this writing, FHA mortgage loan interest rates are still below the three percent line–best execution FHA mortgage loan rates for purchase loans are at 2.40%. The fact that we’re reporting on FHA loan interest rates below three percent makes some a bit more motivated to explore their refinance loan options. Some want to refinance their mortgages to get more affordable monthly mortgage payments. In the wake of COVID-19 furloughs and layoffs earlier in the year there were also falling mortgage rates AND government stimulus checks along with mortgage loan forbearance and other options for those trying to weather the economic impact of the pandemic. But not everyone wants to refinance in 2020 to save money–some need repairs to their property, others want to get out of | more...

November 13, 2020

FHA Home Loan Resources

By Joe Wallace

If you are thinking of applying for an FHA home loan or an FHA refinance loan, there are some important resources you should know about in the planning stages. These resources can help you prepare for your loan application, give you information about estimated mortgage payments, and help you located FHA loan limit information for your county. The first thing a potential home buyer should know about is the ability to contact the FHA to get a referral to a HUD-approved housing counselor who can help you understand the mortgage loan process, what it means to start preparing your credit for a home loan, and more. You can contact the FHA directly by calling 1-800 CALL FHA to request your referral. Another important resource? Online listings of FHA loan limits | more...

November 9, 2020

FHA Home Loan Income Rules You Should Know

By Bruce Reichstein

FHA loans, like all mortgage loans, have rules governing the borrower’s income. Your lender is required to verify your income to make sure it is stable and reliable. The lender is also required to ensure you have a minimum amount of job experience; a year or less is not enough for your total amount of time in the job market. What do you need to know about FHA loan income rules? There are a few important factors. For example, if you have been working a job where you are paid a salary and you are switched to commission income, your lender will require a minimum amount of time earning the new type of income (commissions) before it may be counted to qualify for the new loan. There are also rules | more...

November 6, 2020

Can I Get An FHA Loan More Than Once?

By Joe Wallace

One common question about FHA home loans goes something like this: “I bought a home with an FHA mortgage–can I get an FHA loan more than once?” The question is one of many that indicate a series of persistent myths about FHA mortgages. Those myths include the mistaken belief that FHA loans are only for economically disadvantaged people, or that there are restrictions on FHA mortgages that include income caps or that there must be a demonstration of need to be approved for an FHA mortgage. This might be due to confusion about government-backed loans in general. For example, certain USDA mortgage loans DO require a demonstration of need, income caps per household, and other features that clearly indicate that those USDA loans ARE for those who qualify as low | more...

November 5, 2020

Mortgage Loan Interest Rate Trends

By Joe Wallace

FHA mortgage loan rates have had a wild ride in 2020, and that is likely not over headed into the November and December holiday seasons. The 52-week average for government-backed mortgage loan interest rates has a bottom at 2.25%, which is significant since mortgage loan rates had, until this year, rarely seen territory below the three percent range. And the upper end of the 52-week average at the time of this writing is four percent–that should give you a good idea of how rates have fluctuated in the last 12 months. There is still plenty of uncertainty over which way rates might trend into the new year after the election season, continued issues with COVID-19, etc. At the time of this writing, the best-execution FHA mortgage rates (assuming ideal conditions) | more...

November 4, 2020

Do I Need To Use An Escrow Account For My Home Loan?

By Bruce Reichstein

An escrow account is a tool you and the lender can use to simplify mortgage payment issues with respect to property taxes, homeowner insurance, and other payments. Depending on the nature of your mortgage your lender may require the use of escrow, especially if you are applying for a One-Time Close construction loan or an FHA 203(k) Rehabilitation loan or 203(k) refinance loan. Escrow accounts make it possible for some hands-off payments for property taxes and other expenses. Escrow may be required by law depending on the state you’re buying in and the circumstances of your loan. Escrow accounts may be referred to as impound accounts and if you are putting a fixed amount of money into escrow each month (via your mortgage payment), your lender is basically letting those | more...

November 2, 2020

Will Credit Problems Affect My FHA Home Loan?

By Joe Wallace

Can past credit problems become an issue when trying to get a home loan approved? Some borrowers have less trouble than others getting their mortgage application completed and approved–why is it that some seem to sail through home loan approval and others struggle? Work On Your Credit Today Some people have had past credit issues but did a very smart thing–they made sure they had a full year or more of on-time payments on all financial obligations before applying for their mortgage loan. This tactic really works, and it’s FREE. You don’t pay a third party to “fix” your credit, you take matters into your own hands and pay on time, every time. This will have the result (over time) of raising your credit score and making you a more | more...

October 28, 2020

Why Did My Mortgage Payment Increase?

By Joe Wallace

Some borrowers discover their monthly mortgage payment has gone up and wonder why. Regardless of whether your home loan is an FHA mortgage, a VA home loan, or a conventional mortgage, there are reasons why you might have experienced an increase in your monthly mortgage payment amount. If you see changes in your mortgage payment that you don’t recognize or understand, the first thing you should do is to reach out to your loan servicer to get more information. Don’t simply accept the change if you don’t understand why it happened; consumer advocacy groups such as the government’s Consumer Financial Protection Bureau remind home owners that sometimes a change in your mortgage payment could be a simple mistake by the lender and one that could be immediately addressed with a | more...